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Bitcoin Volatility Stays Low as Supply in Profit Approaches Historical Transition Level

3h ago · 1 source · Summarised by CryptoBipto — how we make this

Analysts have noted that Bitcoin's price volatility remains subdued while the percentage of Bitcoin supply held at a profit is approaching a level that has historically coincided with transitions between bear and bull market phases. The observation is based on on-chain data tracking the proportion of coins currently worth more than their last purchase price.

WHY IT MATTERS

Think of 'supply in profit' like checking how many homeowners in a neighborhood could sell their house for more than they paid. When a large percentage of Bitcoin holders are sitting on gains, it can change how people behave — some may sell to lock in profits, while others may feel more confident about the market. 'Volatility' refers to how much the price swings up and down; low volatility means the price has been relatively stable. Analysts study these patterns from Bitcoin's past to try to understand where the market might be in its cycle, but historical patterns are not reliable predictors of the future. For newcomers, this story illustrates how crypto analysts use blockchain data — which is publicly available — to gauge market conditions, a practice known as 'on-chain analysis.'

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Educational only — not financial advice.

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